The net profit of Adani Wilmar fell 26 per cent year-on-year (YoY) to Rs 219.2 crore in the March quarter of financial year 2021-22 (Q4FY22) on the back of higher tax expense.
In the quarter, the edible oil major’s revenue from operations rose 40.2 per cent YoY to Rs 14,960.4 crore. “We have delivered steady growth in spite of the challenging macro environment. The food and FMCG segment registered double-digit growth. We have continued to improve our market share across edible oil and food categories,” Angshu Mallick, managing director and chief executive officer of Adani Wilmar, was quoted as saying in a press release.
The company said there was a reduction in rural demand because of inflation. In Q4, the firm’s revenue from edible oil stood at Rs 12,415 crore, up 41 per cent YoY, and its revenue from foods and FMCG stood at Rs 757 crore, up 49 per cent YoY.
“We will continue to invest in our brand, distribution, sourcing and manufacturing capabilities. Going forward, we will focus more on inorganic growth and strategic investments in the foods space,” Mallick said.
The company reported a PBIDT (profit before income, depreciation and tax) of Rs 488.3 crore, up 28.7 per cent YoY. Volumes stood at 4.8 million tonnes (MT) in FY22 compared to 4.46 (MT) in FY21, a growth of 8 per cent.
Its food and FMCG portfolio stood at 0.64 MT in FY22, compared with 0.47 MT in FY21, registering a growth of 34 per cent.
Adani Wilmar’s overall distribution now stands at 5,775 units with 65 per cent being common for both oil and foods businesses. It now has a total of 1.7 million retail outlets spread across over 6,400 towns in India.
The Adani Group company said India has started importing sunflower oil from Argentina, Russia, and Turkey. It also pointed out that rural demand may remain tepid in the medium term.
It also said that FMCG witnessed a slowdown on the back of inflation and small-scale players were impacted. However, despite Covid, 800,000 new FMCG stores were added and 50 per cent of these were in rural India.
E-commerce and modern trade witnessed an uptick in consumption.